Chrysler lenders give in on restructuring - Washington Times

Chrysler lenders give in on restructuring - Washington Times:

"'After a great deal of soul-searching and quite frankly agony, they concluded they just don't have critical mass to withstand the enormous pressure and machinery of the U.S. government,' said Thomas Lauria, the group's lead attorney.

The White House's auto task force asked the lenders to accept about 33 cents on the dollar for $6.9 billion of loans and offered them no equity in the company, while unions were given a 55 percent majority stake in exchange for expunging $4.6 billion of debt to a retirement fund."

If this doesn't scare you, it should. The abusive treatment of law abiding citizens (both those who ran these funds and those who invested in them), the demagoguery, and the disdain for two of the sacred pillars of our civil society- personal property and contracts - certainly cause me to question whether this administration recognizes any constraints on its power.